3 Stocks I Saw on TV
Melissa Lee began CNBC's "Fast Money" by asking, "Are we near the bottom or is there more ahead?" Tim Seymour mentioned how the ADP numbers released today simply showed the economy is in a weakened state. Regarding today's market action, Guy Adami says the weakness in the market probably had to do with people nervous that "tomorrow will be very illiquid," since it will be a shortend trading day as we enter the holiday weekend. So Adami said the selloff had a lot to do with people who simply "wanted to get out today." Pete Najarian said the selloff had a lot to do with the surge in oil in the latter half of the trading day. He said "when oil surged, the market began to drag down and fall apart." Karen Finerman said "coal took a bath today." Najarian said "we've watched coal run, run, run, and today it fell apart." He suggests you do what he has been doing and that is positioning himself with put options so when something like coal falls apart, you are protected. Melissa mentioned she heard from investors that the pullback in coal is simply profit-taking from yesterday's run-up.
Seymour also believes the pull back in coal is profit-taking. He said to keep in mind that even though coal was down today, it is still up for the quarter. Adami mentioned how United States Steel ( X) "is down about 21% in one week." He also said "I would like to say this is a buying opportunity" but cannot do so. He says as much as the stock may be cheap right now, it could go even lower.